Discuss the causes of the current worldwide scarcity of semiconductors while identifying the variables influencing the location of the semiconductor and electronic chip manufacturing industries. What actions has India taken recently to assist its ecosystem of electronic manufacturing?
Answer: India is the world's biggest producer of jute, followed by Bangladesh. Jute is primarily grown in West Bengal, Odisha, Assam, Meghalaya, Tripura, and Andhra Pradesh. Factors responsible for the location of the jute industry in India: Raw material: These industries are located in close proximRead more
Answer: India is the world’s biggest producer of jute, followed by Bangladesh. Jute is primarily grown in West Bengal, Odisha, Assam, Meghalaya, Tripura, and Andhra Pradesh. Factors responsible for the location of the jute industry in India:
- Raw material: These industries are located in close proximity to the jute-producing areas. For instance, in West Bengal, the jute mills are located along the banks of the Hugli River.
- Means of transportation: Inexpensive water transport, supported by a good network of railways, roadways, and waterways facilitate the movement of raw materials to the mills.
- Water requirement: The availability of abundant water facilitates the processing of raw jute. For example, the Hugli River supplies the adequate water for jute mills in West Bengal.
- Labor: Cheap labor from West Bengal and adjoining states of Bihar, Odisha, and Uttar Pradesh make this region attractive for industries.
- Other factors: A large urban center providing banking, insurance, and port facilities for the export of jute goods, for example, Kolkata.
Challenges faced by the industry:
- Fragmentation: The Indian Jute industry is highly fragmented and is dominated by the unorganized sector and small and medium industries.
- Increasing input costs: Unpredictable market conditions, weather, policies, etc. have resulted in a supply shortage of raw materials and an increase in material costs.
- Highly competitive export market: In the global market, tariff and non-tariff barriers coupled with a lack of free/preferential trade agreements are posing a major challenge to these Industries.
- For instance, there is stiff competition in the international market from synthetic substitutes and from other competitors like Bangladesh, Brazil, Philippines, Egypt, and Thailand.
- Other issues:
- Poor access to the latest technology and low automation.
- Social issues like child labor and personal safety norms.
It must be noted that the growing global concern for environment-friendly, biodegradable materials, has once again opened the opportunity for jute products. In order to give an impetus to the jute industry, the government has approved that 100% of the food grains and 20% of the sugar shall be mandatorily packed in jute bags.
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In the past few years, growth of the global semiconductor industry has been driven largely by demand from electronics such as smartphones and the proliferation of applications including the Internet of Things and cloud computing. The global semiconductor industry is dominated by companies from the URead more
In the past few years, growth of the global semiconductor industry has been driven largely by demand from electronics such as smartphones and the proliferation of applications including the Internet of Things and cloud computing. The global semiconductor industry is dominated by companies from the United States, Taiwan, South Korea, Japan and Netherlands. Factors affecting the location of semiconductor and electronic chip making industry:
Currently, the world is witnessing a global chip shortage due to the following reasons
Expecting an increase in the global semiconductor market to $650 billion by 2025, India has launched National Policy on Electronics 2019 (NPE 2019) to position itself as a global hub for Electronics System Design and Manufacturing (ESDM). Under this policy
Development of semiconductor industry is part of global strategic competition. Given its long gestation period efforts need to be made to exacerbate the process through exploring possibilities of joint ventures with Japan, South Korea and USA.
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